2023 Supreme(Online)(DEL) 1392
W.P.(C) 16588/2022 & connected matters
Page 1 of 8
$~2,7,17 to 19, 20,21,37,38,39,50,51,53,54 & 55
*
IN THE HIGH COURT OF DELHI AT NEW DELHI
+
W.P.(C) 16588/2022 & CM APPLs.52144-45/2022
MS GRAND MUMTAZ HOTEL AND RESORT THROUGH ITS
MANAGING PARTNER MR WASIM MUSHTAQ ..... Petitioner
Through:
Mr.
Shekhar
Dasi, Advocate (M:
9871655327).
versus
DEPUTY COMMISSIONER NORTH EAST GOVERNMENT OF
NCT OF DELHI & ORS.
..... Respondents
Through:
Ms. Mehak Nakra, ASC with Mr.
Karan Kapur, Advocate for R-1 (M:
9871144582).
Dr. Farrukh Khan, Mr.
Anup
Kr.
Nagar,
Mr.
Aman
Rai
and
Ms.
Shagun Sarohi, Advocates for R-2 (M
9205029846).
7
WITH
+
W.P.(C) 13758/2021 & CM APPL.43444/2021
STERLITE POWER TRANSMISSION LIMITED ..... Petitioner
Through:
Mr.
Deepak
Khurana
and
Mr.
Abhishek
Bansal,
Advocates
(m:
9811231287).
versus
M/S EPC SOLUTIONS LLP & ANR.
..... Respondents
Through:
Mr.
Dinesh
Kr.
Goswami,
Sr.
Advocate
with
Mr.
Rohit,
Mr.
Prakash Kumar Sinha and Mr. Sushil
Kumar, Advocates for R-1.
Mr. Anuj Aggarwal, ASC with Ms.
Ayushi Bansal, Mr. Sanyam Suri and
17
WITH
+
W.P.(C) 16891/2022 & CM APPL.53523/2022
MUNICIPAL CORPOATION OF DELHI
..... Petitioner
Through:
Mr. Kunal Vajani, Mr. Kunal Mimani
and Mr. Kartikey Bhatt, Advocates
(M: 7042492840)
versus
This is a digitally signed order.
The authenticity of the order can be re-verified from Delhi High Court Order Portal by scanning the QR code shown above.
The Order is downloaded from the DHC Server on 28/01/2024 at 11:35:48
W.P.(C) 16588/2022 & connected matters
Page 2 of 8
RAM PRAKASH
..... Respondent
Through:
None.
18
WITH
+
W.P.(C) 16894/2022 & CM APPL.53541/2022
MUNICIPAL CORPORATION OF DELHI
..... Petitioner
Through:
Mr. Kunal Vajani, Mr. Kunal Mimani
and Mr. Kartikey Bhatt, Advocates
(M: 7042492840)
versus
TRIWENI ENTERPRISES
..... Respondent
Through:
None.
19
AND
+
W.P.(C) 16895/2022 & CM APPL.53543/2022
MUNICIPAL CORPORATION OF DELHI
..... Petitioner
Through:
Mr. Kunal Vajani, Mr. Kunal Mimani
and Mr. Kartikey Bhatt, Advocates
(M: 7042492840)
versus
M/S TRIWENI ENTERPRICES
..... Respondent
Through:
Ms. Arshya Singh, Advocate for R-2.
20
WITH
+
W.P.(C) 16942/2022 & CM APPL.53675/2022
NBCC (INDIA) LTD.
..... Petitioner
Through:
Mr.
Kartik
Nagarkatti
and
Ms.
Prakriti
Joshi,
Advocates
(M:
9873368749).
versus
MICRO AND SMALL ENTERPRISES
FACILITATION COUNCIL (SOUTH-EAST),
GOVERNMENT OF NCT OF DELHI & ANR.
..... Respondents
Through:
Mr. Avishkar Singhvi, Mr. Naved
Ahmed
and
Mr.
Vivek
Kumar,
Advocates (M: 9654847982).
Ms. Krishna Parkhani, Advocate for
R-2 (M: 7709872128).
21
WITH
+
W.P.(C) 17725/2022 & CM APPL.56669/2022
This is a digitally signed order.
The authenticity of the order can be re-verified from Delhi High Court Order Portal by scanning the QR code shown above.
The Order is downloaded from the DHC Server on 28/01/2024 at 11:35:48
W.P.(C) 16588/2022 & connected matters
Page 3 of 8
RAJA BAHADUR INTERNATIONAL LTD.
..... Petitioner
Through:
Mr. Shubhas Takia, Advocate.
versus
MICRO SMALL ENTERPRISES FACILITATION
COUNCIL AND ORS
..... Respondents
Through:
Mr. Ashish Verma, Advocate for R-3
(M: 9717944394).
37
WITH
+
W.P.(C) 16567/2022 & CM APPLs.52091-92/2022
JKS INFRASTRUCTURE PRIVATE LIMITED
..... Petitioner
Through:
Mr. Dheeraj Sharma and Mr. Bhanu
Gupta, Advocates (M: 9560434606).
versus
MSME FACILITATION COUNCIL AND ORS
..... Respondents
Through:
None.
38
WITH
+
W.P.(C) 16702/2022
M/S ASN ENGINEERS AND ERECTORS
..... Petitioner
Through:
None.
versus
UNION OF INDIA & ORS.
..... Respondents
Through:
Mr. Ravi Prakash CGSC with Mr.
Amit Acharya, GP, Mr. Farman Ali
and Mr. Usha, Advocates for UOI
(M: 8744956276).
39
WITH
+
W.P.(C) 16720/2022
JENENDRA MEDICOS PRIVATE LIMITED
..... Petitioner
Through:
Mr. Pramod Bhardwaj, Advocate.
versus
UNION OF INDIA & ORS.
..... Respondents
Through:
Mr. Ajay Digpaul, CGSC with Ms.
Swati
and
Mr.
Kamal
Digpaul,
Advocates for UOI (M: 9811157265).
Mr. Avishkar Singhvi, Mr. Naved
Ahmed
and
Mr.
Vivek
Kumar,
Advocates (M: 9654847982).
50
WITH
This is a digitally signed order.
The authenticity of the order can be re-verified from Delhi High Court Order Portal by scanning the QR code shown above.
The Order is downloaded from the DHC Server on 28/01/2024 at 11:35:48
W.P.(C) 16588/2022 & connected matters
Page 4 of 8
+
W.P.(C) 276/2023 & CM APPL.1107/2023
MUNICIPAL CORPORATION OF DELHI
..... Petitioner
Through:
Mr. Kunal Vajani, Mr. Kunal Mimani
and Mr. Kartikey Bhatt, Advocates
(M: 7042492840)
versus
M/S NATRAJ CONSTRUCTION CO.
..... Respondent
Through:
None.
51
WITH
+
W.P.(C) 277/2023 & CM APPL.1108/2023
MUNICIPAL CORPORATION OF DELHI
..... Petitioner
Through:
Mr. Kunal Vajani, Mr. Kunal Mimani
and Mr. Kartikey Bhatt, Advocates
(M: 7042492840)
versus
M/S RAM PRAKASH
..... Respondent
Through:
None.
53
WITH
+
W.P.(C) 294/2023 & CM APPLs.1166-67/2023
MUNICIPAL CORPORATION OF DELHI
..... Petitioner
Through:
Mr. Kunal Vajani, Mr. Kunal Mimani
and Mr. Kartikey Bhatt, Advocates
(M: 7042492840)
versus
M/S RAM PRAKASH
..... Respondent
Through:
None.
54
WITH
+
W.P.(C) 300/2023 & CM APPLs.1184-85/2023
SATYA NARAYAN SHARMA
..... Petitioner
Through:
None.
versus
VARISCON ENGINEERING SERVICES PVT. LTD...... Respondent
Through:
Mr. Kailash Chandra, Advocate (M:
9810675135).
55
WITH
+
W.P.(C) 302/2023 & CM APPLs.1188-89/2023
MUNICIPAL CORPORATION OF DELHI
..... Petitioner
Through:
Mr. Kunal Vajani, Mr. Kunal Mimani
This is a digitally signed order.
The authenticity of the order can be re-verified from Delhi High Court Order Portal by scanning the QR code shown above.
The Order is downloaded from the DHC Server on 28/01/2024 at 11:35:48
W.P.(C) 16588/2022 & connected matters
Page 5 of 8
and Mr. Kartikey Bhatt, Advocates
(M: 7042492840)
versus
SH. CHHATER PAL
..... Respondent
Through:
None.
CORAM:
JUSTICE PRATHIBA M. SINGH
SHEKHAR DASI
The applicability of the MSME Act to suppliers who are not registered under the Act and to works contracts.
Headnote:
MSME - REGISTRATION - APPLICABILITY - WORKS CONTRACT - [MSME Act, 2006]
Fact of the Case:
The petitioners challenged the reference of disputes to arbitration by the Micro & Small Enterprises Facilitation Council (MSEFC) under the Micro Small and Medium Enterprises Development Act, 2006 (MSME Act), arguing that the suppliers were not registered under the MSME Act and that the MSME Act did not apply to works contracts.
Finding of the Court:
The court directed the MSEFC to provide data on the number of references received, successful conciliations, and disputes referred to arbitration. The court also permitted the respondents to file counter-affidavits on the legal issues raised.
Issues: 1. Whether the MSME Act applies to suppliers who were not registered under the Act at the time of entering into the contract and providing services. 2. Whether the MSME Act applies to works contracts.
Ratio Decidendi: The court did not decide the legal issues raised in the petitions but directed the parties to file submissions on the issues. The court also clarified that the arbitration proceedings would continue subject to the outcome of the writ petitions.
Final Decision: The court adjourned the hearing to March 16, 2023, and directed the parties to file submissions on the legal issues raised.
%
11.01.2023
1.
This hearing has been done through hybrid mode.
2.
All these petitions raise important issues arising out of the Micro
Small and Medium Enterprises Development Act, 2006 (hereinafter ‘MSME
Act’).
3.
The ld. Counsel for the Micro & Small Enterprises Facilitation
Council shall obtain data relating to the number of references received by
the Council since its establishment, the number of matters where
conciliation has been successful, and the number of matters wherein disputes
have been referred to arbitration. The same shall be filed in the form a chart
within one week.
4.
All these matters shall be treated as part heard.
5.
The Registry to list these matters on top of board, under the category
of MSME matters.
6.
Submissions heard.
7.
List on 16th March, 2023.
8.
The first issue raised in this petition relate to the fact that the supplier
was not registered under the MSME Act when the contract between the
The Order is downloaded from the DHC Server on 28/01/2024 at 11:35:49
Page 6 of 8
parties was entered and services were provided. Further, the second issue is
that the MSME Act would not apply as the same would apply only in
respect of works contracts. The Respondent disputes this position.
9.
Respondents
are
permitted
to
file
counter
affidavit/
written
submissions on the legal issues raised at least one week before the next date
of hearing.
10.
Parties shall seek an adjournment before the ld. Arbitrator.
11.
List for hearing on 16th March, 2023.
12.
List on 16th March, 2023 along with other MSME matters.
13.
Interim order to continue till the next date of hearing.
14.
The issues raised in this petition are being considered in a batch of
matters. Accordingly, list this matter along with other MSME matters.
15.
It is clarified that no arbitral tribunal shall be constituted till the next
date of hearing.
16.
List on 16th March, 2023
17.
Written submissions/counter affidavit on the legal issues raised may
be filed by both the parties be filed, at least one week before the next date of
hearing.
18.
List on 16th March, 2023 along with all other MSME matters.
19.
Interim order to continue till the next date of hearing.
20.
According to ld. Counsel appearing for the MSEFC, as per the order
dated 3rd November, 2022 passed by this Court in W.P.(C) 13653/2022
The Order is downloaded from the DHC Server on 28/01/2024 at 11:35:49
Page 7 of 8
titled M/s STUP Consultants Pvt. Ltd. v. MSEFC & Ors. the question as to
whether a final settlement has been arrived at or not would be an issue
which the arbitral tribunal would have to decide.
21.
It is noticed that the Process Fee is not filed and the Respondents have
not been served.
22.
Issue fresh notice. Registry to also give intimation to all the
Respondents on the email addresses mentioned in the memo of parties.
23.
The interim order passed on 6th December, 2022 shall continue.
Parties to file their counter affidavits/ written submissions on the legal issues
raised by the next date of hearing.
24.
List before the Registrar on 6th February, 2023.
25.
List on 16th March, 2023.
26.
The issue raised in this petition is that works contracts are not
amenable to the jurisdiction of the MSEFC.
27.
Ld. counsel for the Petitioner relies upon the recent judgment of the
Andhra Pradesh High Court dated 26th April, 2022 passed in WP Nos.
27670/ 2022 titled Rashtriya Ispat Nigam Ltd. v. Union of India. These
very issues are also being considered by this Court in various other MSME
matters.
28.
Issue notice.
29.
Mr. Kailash Chandra, ld. Counsel appearing for the Respondent
submits that the Petitioner has not taken any objection before the MSEFC as
to the maintainability of the claims and accordingly cannot claim such an
objection today.
30.
It is made clear that the arbitration proceedings shall continue and
The Order is downloaded from the DHC Server on 28/01/2024 at 11:35:49
Page 8 of 8
shall be subject to the outcome of this writ petition.
31.
List on 16th March, 2023.
32.
None appears for the suppliers.
33.
These petitions are connected with similar matters raising objections
against the reference mad